New York’s West Texas Intermediate (WTI) crude futures closed positive on Monday (Sept. 19) on the back of tight oil supplies. Because investors are worried that An accelerated rate hike by the US Federal Reserve (Fed) will put the economy on a recession. and affect the demand for oil
- The WTI crude oil contract was delivered in October. It was up 62 cents, or 0.7%, at $85.73 a barrel.
- The Brent crude oil contract (BRENT) delivered in November. Up 65 cents, or 0.7%, to close at $92.00/barrel.
Crude oil futures rose following reports Petroleum Exporting Countries (OPEC) and its allies or OPEC Plus Oil production was below target of 3.583 million barrels per day in August. In the month of July OPEC Plus produces regarding 2.892 million barrels per day of oil below target.
However, the market continues to be pressured by concerns that The Fed’s rate hikes will hurt the economy and oil demand, with the latest CME Group’s FedWatch Tool indicating that 80% of investors are weighing the Fed to raise interest rates by 0.75% to 3.00-3.25%. At the meeting on September 20-21 and weighted 20 percent that the Fed will raise interest rates 1.00%.
Investors will keep an eye on the weekly crude stock report released by the US Federal Energy Information Administration (EIA) on Wednesday. While analysts in a Archyde.com poll predicted that U.S. crude stocks are up 2 million barrels last week.
By InfoQuest News Agency (20 Sep 65)